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In letter to US subcommittee, Apple responds to anticompetitive complaints from Spotify, Match and Tile

Added 05-14-21 05:31:02am EST - “In April, Apple participated in a judiciary competition subcommittee hearing on App Store policy and monopoly power. Representatives from Spotify, Match (parent company of Tinder), and Tile made their case as to Apple's anticompetitive…” - 9to5mac.com

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Posted By TheNewsCommenter: From 9to5mac.com: “In letter to US subcommittee, Apple responds to anticompetitive complaints from Spotify, Match and Tile - 9to5Mac”. Below is an excerpt from the article.

In April, Apple participated in a judiciary competition subcommittee hearing on App Store policy and monopoly power. Representatives from Spotify, Match (parent company of Tinder), and Tile made their case as to Apple’s anticompetitive actions.

In a formal letter today, Apple’s Chief Compliance Officer Kyle Andeer has directly responded to their complaints. Apple characterized the companies’ testimony as “focused more on grievances related to business disputes with Apple than on competition concerns with the App Store”. Apple then goes into detail with the issues raised by each company …

With ever-growing regulatory attention circling Apple’s App Store and its mandated use of In-App Purchase for third party apps, Apple continues to boast how the App Store supports 2.1 million jobs and $138 billion economic activity, in the US alone. Apple says the App Store gives developers a global platform to reach customers and allows them to leverage Apple’s innovations through APIs and new frameworks.

In its testimony, Spotify focused on the 30% cut. Per App Store rules, Spotify is currently required to split the revenue of any subscriptions made inside its application that use Apple’s In-App Purchase system, with Apple’s commission charged at 30% for the first year and 15% for any successive years that each user stays subscribed. Because of these fees, Spotify stopped using In-App Purchase altogether in 2018.

Spotify argues that Apple should allow for competition among competing digital payment systems and “allow supply and demand to determine what the right fee is”. In its letter, Apple says that App Store commission meets or beat the competitive commission determined by market forces.

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